Gov't cuts consumptive expenditure items

Government has embarked on ambitious budget cuts on consumptive expenditures to raise more funds for production oriented expenditures.

The move, according to the ministry of finance commissioner for budget policy, Godwin Kamukama, is aimed at raising more resources to increase food production, value addition and funding for oil roads.

Government will generate approximately sh210b from this arrangement.

The decision to make cuts on consumptive expenditures was made in a special Cabinet meeting convened to approve the Budget Framework Paper before it's presented to Parliament.

Items that will suffer budget cuts in the next budget include allowances, adverting and public relations, workshops and seminars, purchase and hiring of vehicles, hire of venues, books, periodicals and newspapers.

Others include: travels abroad and domestic, welfare, entertainment, special meals and drinks, printing, stationery and photocopying, vehicle maintenance, and fuel expenses.

The Office of the President and State House will forfeit a total of sh17.1b in the new drive aimed at creating more resources for priority production oriented expenditures.  

Part of the additional resources will also be used to provide sh20b to the ministry of ICT and national Guidance for UBC funding requirements, sh15.3b for provision of tractors, sh10b for provision of hoes, and sh23.3b for irrigation interventions.

As part of the interventions to support agriculture and value addition, government plans to allocate a total of sh50b to Uganda Development Bank to provide low interest long-term credit in the 2017/18 financial year

The Presidential Advisory Committee on budget has recommended that the sh25b in Bank of Uganda for Agricultural Credit Facility which is unutilized should be reallocated to the Uganda Development Bank for the current financial year (2016/17).